Disruptive Technologies
Disruptive Technologies and Competitive Forces
A disruptive product, service or technology is an innovation which creates a new marketplace and a new value web. It eventually goes on to “disrupt” an existing market environment and value web. Portable tablet computers from Apple have come and gone before, such as Apple’s “Newton” in the 1990s which was eventually discontinued in 1998 following poor sales. The iPad, launched in 2010, looks like it will be different. It is a beautifully designed product with a high-resolution 10-inch color display, a WiFi Internet connection and access highspeed mobile-data networks. Also, by mid-2012 over half a million applications were available on Apple's App Store which include video, music, text, social networking applications, and video games. Just like the original launch of the iPod and iPhone Apple must convince potential users that they need a new, expensive gadget (around €450) with the functionality that the iPad provides. The iPhone was a massive success which demolished sales of traditional cell phones throughout the world. Of more interest is the iPhone’s impact on the smart phone industry. In five years the iPhone has overturned the status quo as represented by Microsoft’s Windows Phone, RIM’s BlackBerry, and anything Nokia. When the iPhone debuted in 2007, all three were smartphone industry leaders. iPhone’s disruption of the traditional marketplace caused a shift in revenue and profits with huge implications for traditional mobile phone manufacturers. Within a few years, in spite of only a minority share of the smart phone market, Apple had gained a disproportionate share of both revenue and profits. Similarly, within a few years after launch the iPod, coupled with Apple’s iTunes Store, had decimated the portable media player industry creating an entirely new business ecosystem. Will the iPad do likewise as a disruptive technology for the media and content industries? The same thing as what happened with the iPod
A disruptive product, service or technology is an innovation which creates a new marketplace and a new value web. It eventually goes on to “disrupt” an existing market environment and value web. Portable tablet computers from Apple have come and gone before, such as Apple’s “Newton” in the 1990s which was eventually discontinued in 1998 following poor sales. The iPad, launched in 2010, looks like it will be different. It is a beautifully designed product with a high-resolution 10-inch color display, a WiFi Internet connection and access highspeed mobile-data networks. Also, by mid-2012 over half a million applications were available on Apple's App Store which include video, music, text, social networking applications, and video games. Just like the original launch of the iPod and iPhone Apple must convince potential users that they need a new, expensive gadget (around €450) with the functionality that the iPad provides. The iPhone was a massive success which demolished sales of traditional cell phones throughout the world. Of more interest is the iPhone’s impact on the smart phone industry. In five years the iPhone has overturned the status quo as represented by Microsoft’s Windows Phone, RIM’s BlackBerry, and anything Nokia. When the iPhone debuted in 2007, all three were smartphone industry leaders. iPhone’s disruption of the traditional marketplace caused a shift in revenue and profits with huge implications for traditional mobile phone manufacturers. Within a few years, in spite of only a minority share of the smart phone market, Apple had gained a disproportionate share of both revenue and profits. Similarly, within a few years after launch the iPod, coupled with Apple’s iTunes Store, had decimated the portable media player industry creating an entirely new business ecosystem. Will the iPad do likewise as a disruptive technology for the media and content industries? The same thing as what happened with the iPod